Dividend Reinvestment Plan (DRIP)

A Dividend Reinvestment Plan (DRIP) is a program allowing investors to automatically reinvest their dividends from a stock back into more shares of that company, often without paying additional fees. Instead of receiving cash payments, the dividends are used to buy additional shares, compounding investment growth over time. This strategy helps investors grow their holdings efficiently, benefiting from the company's success and the power of dollar-cost averaging—buying more shares when prices are low and fewer when prices are high. It’s a convenient way to steadily increase your investment without needing to make manual purchases.